Facebook makes a killing

what-we-learned-about-facebook-ceo-mark-zucke-L-gl5gYRSocial notworking site Facebook surprised the cocaine nose jobs of Wall Street by posting a strong profit and revenue growth.

Total revenue jumped to $4.50 billion in the third quarter, from $3.20 billion a year earlier. Analysts had expected revenue of $4.37 billion. Net income attributable to stockholders rose to $891 million, from $802 million.

Rather than people leaving the site, it grew even larger, with a spike in mobile users and advertising that lifted its stock to an all-time high.

The figures suggest it is poised to take on mainstream media as an advertising force, helping investors to overlook Facebook’s huge spending on hiring and building data centres.

Facebook now has eight billion video views per day from 500 million people, compared with four billion views in April.

Chief Operating Officer Sheryl Sandberg said that Facebook’s website and Instagram photo-sharing app account for more than one in five minutes spent on mobile devices in the United States.

“In the medium to long run, we believe that we’re not competing between Facebook and Instagram. We’re competing with other forms of media,” Sandberg said.

Facebook had 1.55 billion monthly active users as of September 30, up 14 percent from a year earlier. Of these, 1.39 billion used the service on mobile devices.

Ad revenue grew 45.4 percent to $4.30 billion, with 78 percent of that coming from mobile versus 66 percent in the year-ago quarter.

Part of the upside came from Instagram. The social notworking site did not say Instagram’s ad sales figures, but it is expected to bring in $595 million in mobile ad revenues this year, and its ad revenue is projected to grow to $2.8 billion by 2017.

Facebook’s spend of  $3 billion, up 68 percent from the third quarter last year, did not seem to worry investors or analysts.